§  61.38   Supporting information to be submitted with letters of
transmittal.

   (a) Scope. This section applies to dominant carriers whose gross annual
   revenues exceed $500,000 for the most recent 12 month period of
   operations or are estimated to exceed $500,000 for a representative 12
   month period. Local exchange carriers serving 50,000 or fewer access
   lines in a given study area that are described as subset 3 carriers in
   § 69.602 of this chapter may submit Access Tariff filings for that
   study area pursuant to either this section or § 61.39. However, the
   Commission may require any carrier to submit such information as may be
   necessary for a review of a tariff filing. This section (other than the
   preceding sentence of this paragraph) shall not apply to tariff filings
   proposing rates for services identified in § 61.42 (d), (e), and (g).

   (b) Explanation and data supporting either changes or new tariff
   offerings. The material to be submitted for a tariff change which
   affects rates or charges or for a tariff offering a new service, must
   include an explanation of the changed or new matter, the reasons for
   the filing, the basis of ratemaking employed, and economic information
   to support the changed or new matter.

   (1) For a tariff change the carrier must submit the following,
   including complete explanations of the bases for the estimates.

   (i) A cost of service study for all elements for the most recent 12
   month period;

   (ii) A study containing a projection of costs for a representative 12
   month period;

   (iii) Estimates of the effect of the changed matter on the traffic and
   revenues from the service to which the changed matter applies, the
   carrier's other service classifications, and the carrier's overall
   traffic and revenues. These estimates must include the projected
   effects on the traffic and revenues for the same representative 12
   month period used in (ii) above.

   (2) For a tariff filing offering a new service, the carrier must submit
   the following, including complete explanations of the bases for the
   estimates.

   (i) A study containing a projection of costs for a representative 12
   month period; and

   (ii) Estimates of the effect of the new matter on the traffic and
   revenues from the service to which the new matter applies, the
   carrier's other service classifications, and the carrier's overall
   traffic and revenues. These estimates must include the projected
   effects on the traffic and revenues for the same representative 12
   month period used in paragraph (b)(2)(i) of this section.

   (3) [Reserved]

   (4) For a tariff that introduces a system of density pricing zones, as
   described in § 69.123 of this chapter, the carrier must, before filing
   its tariff, submit a density pricing zone plan including, inter alia ,
   documentation sufficient to establish that the system of zones
   reasonably reflects cost-related characteristics, such as the density
   of total interstate traffic in central offices located in the
   respective zones, and receive approval of its proposed plan.

   (c) Working papers and statistical data. (1) Concurrently with the
   filing of any tariff change or tariff filing for a service not
   previously offered, the Chief, Pricing Policy Division must be provided
   two sets of working papers containing the information underlying the
   data supplied in response to paragraph (b) of this section, and a clear
   explanation of how the working papers relate to that information.

   (2) All statistical studies must be submitted and supported in the form
   prescribed in § 1.363 of the Commission's Rules.

   (d) Form and content of additional material to be submitted with
   certain rate increases. In the circumstances set out in paragraphs
   (d)(1) and (2) of this section, the filing carrier must submit all
   additional cost, marketing and other data underlying the working papers
   to justify a proposed rate increase. The carrier must submit this
   information in suitable form to serve as the carrier's direct case in
   the event the rate increase is set by the Commission for investigation.

   (1) Rate increases affecting single services or tariffed items.

   (i) A rate increase in any service or tariffed item which results in
   more than $1 million in additional annual revenues, calculated on the
   basis of existing quantities in service, without regard to the
   percentage increase in such revenues; or

   (ii) A single rate increase in any service or tariffed item, or
   successive rate increases in the same service or tariffed item within a
   12 month period, either of which results in:

   (A) At least a 10 percent increase in annual revenues from that service
   or tariffed item, and

   (B) At least $100,000 in additional annual revenues, both calculated on
   the basis of existing quantities in service.

   (2) Rate increases affecting more than one service or tariffed item.

   (i) A general rate increase in more than one service or tariffed item
   occurring at one time, which results in more than $1 million in
   additional revenues calculated on the basis of existing quantities in
   service, without regard to the percentage increase in such revenues; or

   (ii) A general rate increase in more than one service or tariffed item
   occurring at one time, or successive general rate increases in the same
   services or tariffed items occurring within a 12 month period, either
   of which results in:

   (A) At least a 10 percent increase in annual revenues from those
   services or tariffed items, and

   (B) At least $100,000 in additional annual revenues, both calculated on
   the basis of existing quantities in service.

   (e) Submission of explanation and data by connecting carriers. If the
   changed or new matter is being filed by the issuing carrier at the
   request of a connecting carrier, the connecting carrier must provide
   the data required by paragraphs (b) and (c) of this section on the date
   the issuing carrier files the tariff matter with the Commission.

   (f) Copies of explanation and data to customers. Concurrently with the
   filing of any rate for special construction (or special assembly
   equipment and arrangements) developed on the basis of estimated costs,
   the offering carrier must transmit to the customer a copy of the
   explanation and data required by paragraphs (b) and (c) of this
   section.

   (g) On each page of cost support material submitted pursuant to this
   section, the carrier shall indicate the transmittal number under which
   that page was submitted.

   [ 49 FR 40869 , Oct. 18, 1984, as amended at  53 FR 36289 , Sept. 19, 1988;
    54 FR 19841 , May 8, 1989;  55 FR 42382 , Oct. 19, 1990;  56 FR 55239 , Oct.
   25, 1991;  57 FR 54330 , Nov. 18, 1992;  58 FR 36147 , July 6, 1993;  58 FR 48762 , Sept. 17, 1993;  64 FR 46588 , 46593, Aug. 26, 1999;  67 FR 13228 ,
   Mar. 21, 2002]

   Effective Date Note:   At  69 FR 25336 , May 6, 2004, paragraph (b)(4) of
   § 61.38 was removed and reserved. This paragraph contains information
   collection and recordkeeping requirements and will not become effective
   until approval has been given by the Office of Management and Budget.